Explore ETFs for yourself at Citywire's ETF zone.

ETF Securities (ETFS) has launched a range of two times-leveraged long and short exchange traded funds tracking Europe’s main equity indices.

The eight new ETFS will offer leveraged long and short exposure to the FTSE 100, Dow Jones EURO STOXX, CAC 40 and DAX.

ETFS said the new funds could be used to hedge portfolios or in place of using derivatives, and would allow long-only fund managers to access leveraged short exposure without the need for stock loan arrangements.

‘We are issuing these products to add value to the market and respond to investor demand after the success of short and leveraged ETCs [exchange traded commodities],’ said ETFS head of sales and marketing Hector McNeil.

The four two times short ETFs will carry an annual management charge (AMC) of 60 basis points, while the two times leveraged ETFS will carry AMCs of between 40 and 50 basis points.

The eight new ETFs will sit on the ETFS platform, the ETF Exchange, taking the number of ETFs on the platform to 21.

ETFS claims its new platform is home to a ‘third generation’ of ETF. It points to the beginning of ETFs as based on physical baskets of securities, before ‘swap-based’ ETFs backed by a counterparty emerged.